Here are the most important news items that investors need to start their trading day:
1. New week
Stocks are set to open higher Monday as investors assess the implications of the Silicon Valley Bank failure and a federal backstop. Bank stocks, however, remained under the pressure with First Republic down 70% and leading the sector’s premarket decline. Each of the major averages posted ugly losses last week. On Friday, the Dow Jones Industrial Average dropped 1.07%, to close the week down 4.44% — its worst weekly performance since June. The S&P 500 fell 1.45% Friday to end the week 4.55% lower, and the Nasdaq Composite sank 1.76% on the day and 4.71% on the week. Follow live market updates.
2. Every award all at once
OK, not every award, but Sunday night at the Oscars the film “Everything Everywhere All at Once” dominated. The movie, directed by Daniel Kwan and Daniel Scheinert, went into the night nominated for 11 prizes and took home seven: best picture, best actress, best director, best editing, best supporting actor, best supporting actress and best original screenplay. “Everything Everywhere” has emerged as a major touchstone for Asian representation in U.S. film, and this year’s awards nominees marked several firsts for the Asian community. Read CNBC’s live blog coverage from Oscars night. And for more, check out how the Oscar box office bump is shrinking.
3. FDIC steps in
Federal regulators stepped in this weekend to cover customers of Silicon Valley Bank who were at risk of losing their money because of a $250,000 cap on guaranteed deposits. The plan calls for FDIC insurance to cover depositors and won’t rely on bailouts or taxpayer dollars, according to officials. The Treasury Department, Federal Reserve and FDIC issued a joint statement saying they were “taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system.” Authorities had worried about contagion in the banking industry if the SVB fallout couldn’t be contained. On Sunday, regulators also shuttered Signature Bank in New York, which had been popular among cryptocurrency companies, similar to SVB.
4. Crypto rallies
Cryptocurrencies spiked on the news of a government backstop for SVB, collectively gaining more than $70 billion in the 24 hours leading up to 2 a.m. ET and jumping back above $1 trillion. Silvergate Capital, which shuttered last week, SVB and Signature Bank were all friends of cryptocurrency, sending the digital coins on a wild trading ride. “Given the Fed announcement over the weekend of a backstop for banks and specifically Silicon Valley Bank, markets have turned euphoric knowing that depositors’ money is safe and a major potential bank run has been averted,” said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, in a statement to CNBC.
5. What £1 will get you
During a U.S. banking crisis … it’ll win you an entire business. HSBC on Monday announced it’s agreed to rescue the U.K. subsidiary of SVB, for £1, or about $1.21. The sale will protect the deposits of SVB U.K. customers, which as of Friday stood at about £6.7 billion. The transaction does not include the assets and liabilities of SVB U.K.’s parent company. It “strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally,” according to HSBC Group CEO Noel Quinn. “SVB U.K. customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC,” he said.
— CNBC’s Tanaya Macheel, Fred Imbert, Samantha Subin, Alex Harring, Jeff Cox, Sarah Whitten, Mike Calia, Arjun Kharpal, Elliot Smith and Ruxandra Iordache contributed to this report.
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